Iconic American steel maker United States Steel is in play and Cleveland-Cliffs has emerged as the most credible buyer for the entire company. But Cliffs bid for U.S. Steel is hostile, something that can always complicate matters. There appeared, however, to be a thaw in their relationship which could speed a resolution to the sale process.
U.S. Steel declined to comment. Cliffs didn’t immediately respond to a request for comment from Barron’s. That bid values U.S. Steel at about $32.87 today, about 75 cents, or 2%, above where U.S. Steel stock is trading. One interpretation of the muted stock price reaction is that the agreement is fine, but it doesn’t mean Cliffs will increase its bid materially. If U.S. Steel stock traded above the bid price it would signal investors expect a bump, or another credible bidder to emerge.